IMF optimistic about the recovery of the Iraqi economy during 2015 and is likely to increase oil exports to “23%”
IMF optimistic about the recovery of the Iraqi economy during 2015 and is likely to increase oil exports to “23%”
07.12.2015 12:49
Long-Presse / Baghdad
Counting the International Monetary Fund, said on Sunday that Iraq faced “double shock” in 2014, the past, as a result of attacks (Daash) and the decline in world oil prices, expressing optimism the recovery of the Iraqi economy relatively during 2015, and the surprise of the performance of the oil sector, despite the “serious challenges” faced by , while stressing the continuation of cooperation “closely” with the Ministry of Finance and the Central Bank of Iraq to implement sound economic policies “,” to enhance the hardness of the national economy, counting that the head of government, Haider al-Abadi, see the “correct” for the role of the private sector in the economy.
The head of the IMF mission, Carlo Sdralavic, in a meeting singled out by the (long-Presse), “The Iraq over a rough time during 2014, where it was to deal with the double shock of the organization Daash attacks coincided with a sharp fall of global oil prices,” returned to “conflict Daash with about a very serious impact on the Iraqi economy, as well as the human tragedy caused by, a large pressure on the budget, which should provide a significant increase in security spending, and meet the growing needs of the country. ”
He Sdralavic, that “Iraq influenced shocked oil prices much higher than other oil-exporting countries, due to the severity of the economy’s dependence on hydrocarbons,” noting that “Iraq’s oil exports accounted for more than 93 percent of government revenues in 2014 being the driving force of performance in most areas The non-oil economy, particularly through government spending. ”
The head of the International Monetary Fund for Iraq mission, that “the Iraqi economy shrank overall by 1.2 percent in 2014, while non-oil economy shrank by almost nine percent,” and expressed “optimism occurrence of some recovery during the current 2015, through the occurrence of growth rate 0.5 percent growth thanks to the oil sector. ”
He said Sdralavic, that “the Iraqi oil sector performance under challenging grave circumstances may surprise of many observers,” likely the growth of the Iraqi oil sector, production increased by 11 percent in the current 2015, and that the oil exports increase by 23 percent, driven by production in the oil fields South-ins and oil exports, which facilitated the agreement between the federal government and the Kurdistan Regional Government. ”
And on the extent of Iraq’s implementation of reforms by the Fund requested during recent meetings, he said the head of the IMF mission to Iraq, “The Fund works in close collaboration with the Ministry of Finance and the Central Bank of Iraq to implement measures and structural reforms necessary to deal with the impact of shocks”, expressing his belief that “dialogue Fund with Iraq was very fruitful. ”
And pamper Sdralavic, the cooperation that the “Fund recommended to correct public finances to keep spending in the availability of resources and funding limits,” he continued that “the budget in 2015, showed effort Mahmoud target pressure oil revenues on the one hand and increase spending on security and humanitarian needs on the other hand.”
And he went head of the IMF Mission for Iraq, that “The Fund also supports the government’s efforts to diversify its sources of funding, internal and external alike,” and added that “also seeks to help ease funding pressures through possible funding of $ 830 million almost offers to Iraq under rapid funding tool, which allows emergency assistance to member countries when facing balance of payments financing needs urgent, as is the case with Iraq. ”
He went Sdralavic, As for the “Central Bank of Iraq, the recent steps towards the liberalization of the foreign exchange market in line with the Fund’s recommendations in this regard, such as those related to achieving a gradual reduction in the distortions foreign exchange market, which imposes significant costs on the economy, and can reduce confidence in the currency “, he returned to that would” help reduce the steps in the foreign exchange rate differentials in the parallel market and contribute to the reduction of the volatility of these differences. ”
In response to a question (range Press) whether Iraq has made progress in the empowerment of the private sector, saw the head of the IMF Mission for Iraq, that “the Prime Minister, Haider al-Abadi, see the sound of the role of the private sector in the economy, it is to provide a source of growth It is not linked to the oil sector, and job creation not in a position to provide the public sector the number of jobs that was able to be supplied by, “adding,” but the security situation still poses a challenge to the effective participation of the private sector in the economy. ”
He went Sdralavic, saying that “Iraq continues, though, to take steps to enable the private sector, the financial sector example of this, where authorities were working to create an environment where equality between private banks and those of state-owned materialize,” adding to it, “can be public entities currently accept letters of guarantee and guaranteed checks issued by private banks, has also increased the maximum letters of credit between the Finance Ministry and private banks, and allowed to become state-owned enterprises dealing with private banks to open accounts and the acquisition of deposits and the payment of salaries. ”
And he continued to head the International Monetary Fund mission to Iraq, as “the government also prepared a study on the reform of state-owned enterprises which envisages a systematic assessment of the cost-benefit in order to determine the most appropriate structure for each institution,” stressing “the fund’s commitment to close the dialogue on policies with the government and central bank to help Iraq the implementation of sound macroeconomic policies that will strengthen the economy in this hardness filled with challenging conditions grave. ”
It is noteworthy that the International Monetary Fund, a specialized agency of the Bretton Woods system of the United Nations, was established under an international treaty in 1945 to work on enhancing the safety of the global economy, and is based in Washington DC, and managed by its members who include all the countries of the world about their number of 188 countries.
The Fund consists of the Board of Governors, which consists of the governor and deputy member appointed by each of the Member States shall formulate the general policy of the Fund. The management of the Fund consists of a board that includes sixteen members representing major countries and two members from Latin America and nine other countries, and play to contribute to the IMF quotas in determining the voices of the state in which, owns USA (23.1%) of the voting power, Britain (11% ) This gives these two countries to control the vote, and is determined by aid obtained by the Member States on the basis of the share in the Fund’s capital, if needed state to amount to meet the deficit in the balance of payments Fund acknowledged the need they can get (25%) of its stake in the fund through one year to place at the disposition of this loan is equal to the national State in its own currency and can not enjoy this right only for five years.
In this fund, and Iraq is a member, where its share amounted to eight million dollars, and in 1960 reached the quota (15) million and the share taken growing, gradually until it reached more than 200 million dollars at the end of the seventies, and enable Iraq to benefit from the Fund’s resources when needed to foreign currency because of the shortage of reserves in 1976 as the withdrawal of the amount of (27) million in 1970.
He announced the International Monetary Fund, in (the fifth of June 2015) is ready to give Iraq an exceptional financial assistance worth 833 million dollars, to help him to cope with the economic implications of war with al (Daash) and the deterioration of oil prices in the world market, noting that the Iraqi economy shrank by 2.1 percent in 2014, the past “because of the violence is the basis”, and that “not record” the biggest growth of 0.5 percent this year, 2015.
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